Supply Management is a complementary discipline that encompasses the alignment of organizations, processes, and systems for strategic sourcing, contract management, supplier management, spend analysis to continuously improve global supply for best-value performance in support of the strategic objectives of the business. [1]

Supply Management’s focus on the total cost of ownership for acquiring goods and services by making the procurement process more efficient to reduce a firm’s overall expenditures

Supply management deals primarily with the oversight and management of materials and services inputs, management of the suppliers who provide those inputs, and support of the process of acquiring those inputs. Supply management consists of a five stage process: [1]

The generation of requirements

Sourcing

Pricing

Developing an enforceable agreement

Post-award managing of relationship

Supply management benefits are: [1]

Enhancing the quality of a product or service

Ensuring on-time performance

Reducing time the market

Giving sales and marketing freedom to maximize the firm’s net revenues through the application of price elasticity

Enabling the inflow of technologies which are the basis of a successful new product

AcqTips:

Certification: Non-profit associations; the Certified Purchasing Manager (CPM) and Certified Professional in Supply Management (CPSM) through the Institute for Supply Management. For-profit; Next Level Purchasing, Inc. who offers the Senior Professional in Supply Management (SPSM) Certification.

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